Gold ETFs Surpass Bitcoin ETFs as Precious Metal Hits Historic Highs

Gold exchange-traded funds (ETFs) have overtaken Bitcoin ETFs in total assets under management, as investors flock to the safety of gold while Bitcoin struggles with a sharp market correction.

Bitcoin has tumbled over 19% in the last three months, while gold has surged 12.5%, drawing renewed demand from risk-averse investors.

Since Feb. 24, Bitcoin ETFs have experienced $3.8 billion in net outflows, according to Farside Investors, reversing the strong inflows seen after their launch in early 2024. Meanwhile, gold ETFs have recorded their largest monthly inflows since March 2022, according to the World Gold Council.

Bloomberg ETF analyst Eric Balchunas noted that gold ETFs have now “reclaimed the asset crown” from Bitcoin ETFs, which had briefly surpassed them in December 2024 during a post-election crypto surge.

Gold’s meteoric rise continued this week, with the precious metal breaching the $3,000 per ounce level for the first time ever. Futures contracts for April delivery also crossed this threshold earlier in the week.

Analysts attribute gold’s strength to rising market volatility and geopolitical concerns, which have reinforced its reputation as a preferred hedge against economic instability.